#+TITLE: The Lean Startup 
#+Author: Eric Ries

* Intro

  A lean startup promotes a minimal viable product.  It create a
  science of entrepreneurship.  It consists of three stages: learn,
  build, measure.
* learn, build, measure feedback loop
  It operates between two extremes

  |-----------------------------------+---------------------+-----------------------------------|
  | build it perfectly then sell      | build,learn,measure | Just do it                        |
  |-----------------------------------+---------------------+-----------------------------------|
  | What if you build a great product | Do people want your | Don't waste time planning.        |
  | that no one wants?                | product?            | Put on your shoes and do it.      |
  | Is spending 6 months and lots of  |                     | The problem here is that          |
  | $ to build something that no      | build it            | you are just operating in         |
  | one wants worth it?               |                     | chaos.  With no plan, you have    |
  |                                   | measure             | a hard time measuring success.    |
  |                                   |                     | This is very stressful.  it is    |
  |                                   |                     | running in circles trying to fly. |
  |                                   |                     |                                   |
  |-----------------------------------+---------------------+-----------------------------------|
** learn 
   Figure out what customers want.  Make a hypothesis.
** build
   Now build a SIMPLE product.  With just features enough that the customer wants.
** measure
* everything is an experiment 
** observe, DO NOT ask

   Show a product and gage interest?

   Ask myself?  Do I need to build anything at all?

   Does anyone want this thing?
   
   I could simple make a page and say, I am going to make this thing.  I am discovering interest.  Do you want it?
** Minimum viable product 

   Lean production says /waste is anything that doesn't create value for the customer./

   The lean startup says /waste is that which doesn't lead to validated learning./
   
   If you are embarrassed to release the product, then you are probably releasing an minimum viable product.
** what is waste?  and validated learning?

   Any effort that does not help you to understand what a customer
   wants, is waste.  Eliminate it.
   
   Validated learning is what is minimally necessary to discover what
   customers want.

   How do you gage what customers want?  Are your metrics changing?
   Do you have more subscribers?  Do you have more downloads?  Do you
   have more sign ups?  Are you getting more emails?  Are you making
   more money?  Pick some things to measure.  

   A startup's goals is to synthesize a vision and the needs of your
   customers.
   
   A good startup is running hundreds of experiments to discover the
   needs of the customer every month.

* 3 types of MVP

** video mvp dropbox showed a video that showed a easy to use file
   sharing tool.  But the video was fake.  The product didn't even
   exist.

** concierge mvp 

    I focus my product on a few individual customers.  I see their
    interest.  Do they want to use this thing?  Then I can expand from there.

** The Wizard of Oz

    You pretend that you have invented a fancy technical solution, and
    you have customers use the product.  What the customer doesn't
    know, is that humans are providing the solution.  If customers
    like the product, then you can create the fancy technical
    solution.
* the 3 engines of growth 
   
   Startups don't fail, they drown.  A successful startup defines,
   what they DO NOT do.  They avoid feature creap.

** Sticky engine

    These businesses attract customers for life.  We track the
    customer acquisition rate and the rate at which customers leave.
    
    gillette
** The viral engine 

    For each customer that signs up, that customer brings a new
    customer.  To be a success, ideally each customer needs to attrack
    at least 1.1 new customer.  Anything below 0.5 is probably not so
    great.
    
    social networks
** the paid engine 

    CPA cost per acquisition

    LTV life time value
    
    ecommerce businesses.
* pivot or persevere 
   
  Should I keep using my strategy?  Or should I change my strategy.  

  establish a baseline with build measure feedback

  attempt to tune the strategy to be more successful.  You can say
  something like, we are currently at 500 customers, and each are
  paying $3 per month.  In 3 months, we expect to see 800 customers
  each paying $3 per month.  If you are slowly getting there, then
  keep moving.

  3 months later...pivot or persevere?
*** types of pivots
**** Change your selling strategy

     charge for the product

     use adds and give the product away for free.

